A month ago if anyone posted any bearish view about Micron and memory stocks, they would get downvoted into oblivion.
At this point, Micron is now $720 and down 40% from its all time high.
The reason I post about this frequently is because it's so fascinating to me.
Micron had an explosive run up and so many people FOMO'd at the top.
But even for the people who bought into the stock when it was $100 or $300, they aren't winners.
Because if they had simply sold at $1000, they would have locked in massive gains.
Price dipped down into the $800s, technical patterns formed on the daily chart, and even just 6 days ago they had the chance to sell at $1000 per share to book massive profits from their entries.
But they didn't.
A majority of them just kept holding, and they still are holding.
I truly will never understand it.
I don't think anything could happen for people to sell and take profits/minimize losses on Micron.
I think the truth is that most retail Micron investors are really willing to hold until their investment goes to $0.
My only question is: why?
I really don't get why a human would do this to themselves.
Gambling addiction maybe?
But how is it possible that so many retail investors are gamblers? Is the truth really that the remaining investors in Micron are mainly just gambling people?
People talk about HBM being a moat, and supply being sold out for 3 years in advance.
But I don't understand why it's not possible for people to think that they were wrong, and that Wall Street actually decides where to send price. Not record profits or long term contracts being locked in.
Maybe the truth is the stock ran up far too much and far too quickly and it's due for a massive correction that will last a long time. And that at this point, it may be better to sell and start shorting the stock, or putting the money into other assets.
Micron investors don't consider doing any of this though.
They just simply.. hold.
And hold and hold, as price continues to dump day after day.
And that's the part that truly fascinates me.
Maybe one day, someone will come along and analyze what happened here.
So we can truly understand the psychology of Micron investors today.